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    HBIO
    Earnings call· Jun 2026(Q2 FY26)

    HARVARD BIOSCIENCE Q2 FY26 earnings call HBIO

    Aug 11, 2026 Source

    Executive summary

    Harvard Bioscience Q2 FY26 — Double-Digit Revenue Growth and Raised Full-Year Outlook

    Harvard Bioscience delivered strong Q2 FY26 results, driven by double-digit revenue growth in its CMT and preclinical portfolios and robust demand from CRO customers. The company raised its full-year revenue outlook, reflecting commercial momentum and strategic execution. While product mix shifts impacted gross margin, management remains confident in long-term expansion through NPI platforms and recurring revenue growth, supported by Project Viking cost savings.

    Highlights

    5

    • Revenue grew 11% year-over-year to $22.7 million, exceeding guidance.

    • Adjusted EBITDA increased 11% year-over-year to $1.7 million.

    • Full-year revenue growth guidance raised to 3-5% from 2-4%.

    • Recurring revenue increased to 55% of total revenue in H1, moving towards a 60% long-term target.

    • New Product Innovation (NPI) revenue contributed 11% of total revenue, up from 3% last year.

    Concerns

    3

    • Adjusted gross margin was 57%, slightly lower than anticipated due to higher CMT product sales and China sales, which carry lower relative gross margins.

    • Full-year adjusted gross margin guidance revised down by 100 basis points to 57-59% due to product mix dynamics.

    • Cash used in operations for H1 was $0.3 million, compared to $5.7 million generated in the prior year, driven by inventory builds and higher interest costs.

    Guidance & targets

    9
    CategoryTargetConfidence
    Full-year 2026 Revenue Growth
    3% to 5%
    high materiality
    High
    Full-year 2026 Adjusted Gross Margin
    57% to 59%
    high materiality
    Medium
    Full-year 2026 Adjusted EBITDA Growth
    6% to 10%
    high materiality
    High
    Q3 2026 Revenue
    $21 million and $22.6 million
    medium materiality
    High
    Q3 2026 Adjusted Gross Margin
    56% and 58%
    medium materiality
    High
    Q3 2026 Adjusted EBITDA
    $1.5 million and $2.5 million
    medium materiality
    High
    Project Viking Cost Savings
    $3M
    medium materiality
    High
    Project Viking Annual Cost Savings
    $4M
    medium materiality
    High
    Long-term Recurring Revenue Target
    60%
    low materiality
    Medium

    Segment performance

    4
    SegmentRevenueYoYQoQMargin
    Americas
    Driven by strong telemetry growth at CRO customers. Academic funding environment beginning to improve, with stronger sales expected in H2.
    		$11.4 million13%——
    Europe
    Declines in academic and government channels offset by growth across CRO, pharma, and distribution partners.
    Constant currency growth: 1.5%
    		$6.8 million3%——
    APAC
    Primarily driven by strong sales of BTX electroporation and respiratory lines.
    		$4.6 million24%——
    China
    Driven primarily by CRO demand and progress from the Made in China localization initiative. Expected strong regional tailwind from additional localized product lines.
    		$3.1 million29%——

    Operational metrics

    16
    Revenue
    $22.7 millionup 11% year-over-year
    Q2 FY26

    Exceeded guidance range, driven by increased demand from CRO customers and solid execution through distributors.

    Adjusted Gross Margin
    57%slightly lower than anticipated
    Q2 FY26

    GAAP gross margin was 55.6%, adjusted to 55.8% after adding back restructuring costs.

    Adjusted EBITDA
    $1.7 millionup 11% year-over-year
    Q2 FY26

    Reached the high end of the outlook range, remained flat given normalized OPEX actions and investment in sales and marketing.

    NPI Revenue Contribution
    11%versus 3% last year
    Q2 FY26

    New Product Innovation revenue continued to deliver per expectation.

    Cash and Cash Equivalents
    $6.5 million
    Q2 FY26

    Balance at the end of the quarter.

    Net Debt
    $33.5 millionup roughly $5.6 million year-over-year
    Q2 FY26

    Total debt was $36.7 million, reduced by $3.3 million in unamortized deferred financing costs.

    Total Debt
    $36.7 million
    Q2 FY26

    Before reduction by unamortized deferred financing costs.

    Cash Used in Operations
    $0.3 millioncompared to cash generated of $5.7 million in YTD 2025
    H1 FY26

    Primarily driven by inventory builds to improve product lead times and support manufacturing pre-builds for Project Viking transitions, as well as higher interest costs.

    Adjusted Operating Income
    $1.1 millionup from $1 million in Q2 2025
    Q2 FY26

    Operating margin was 5.1% in Q2 2025.

    OPEX Increase
    $1.2 million
    Q2 FY26

    Primarily due to restored salaries and merit, reflecting a normalized cost structure.

    Non-cash Deferred Financing Amortization
    $0.3 million
    Q1 and Q2 FY26

    Associated with December 2025 debt refinancing.

    Non-cash Exit Fee Accruals
    $0.2 million
    per quarter

    Ongoing accruals.

    Telemetry Business Growth
    double digits
    Q2 FY26

    Strong growth in the quarter, contributing to overall performance.

    Electroporation Business Growth
    strong, double digits
    Q2 FY26

    Part of the strong performance across AAA bioprocessing and electroporation platforms.

    Organoid/Multi-channel Systems Performance
    strong performance
    YTD FY26

    Strong performance year-to-date.

    Fisher Scientific Distribution Agreement Growth
    double-digit growth
    Q2 FY26

    Continued to deliver strong commercial returns and broaden customer reach.

    Industry KPIs

    5
    MetricValueDetails
    Revenue EPS guidanceFY26 revenue growth: 3-5%; Q2 FY26 adjusted EPS: -$0.14%
    China revenue exposure$3.1MUSD
    Segment organic revenue growthAmericas: $11.4M; Europe: $6.8M; APAC: $4.6M; China: $3.1MUSD
    Instruments vs consumables services mix55%%
    Organic core revenue growth by end marketCRO customers: strong demand; academic segment: improvement over Q1

    Product announcements

    2
    ProductTypeDetails
    Localized BTX linelaunch
    Additional localized product linesroadmap

    Deals & partnerships

    1
    Fisher ScientificDistribution agreement

    The distribution agreement with Fisher Scientific continues to deliver strong commercial returns and broaden customer reach.

    Risks & headwinds

    3
    Gross Margin Impact from Product MixQ2 FY26 and FY26

    Adjusted gross margin was 57%, slightly lower than anticipated; full-year adjusted gross margin guidance revised down by 100 basis points to 57-59% from 58-60%.

    Mitigation: Strategic focus on higher margin NPI platforms and expanding recurring revenue; structural cost savings from Project Viking beginning in 2027.

    Cash Flow from OperationsH1 FY26

    Cash used in operations for H1 FY26 was $0.3 million, compared to $5.7 million generated in YTD 2025.

    Mitigation: Inventory builds to improve product lead times and support manufacturing pre-builds for Project Viking transitions; higher interest costs from debt deal.

    Increased Operating Expenses (OPEX)Q2 FY26

    OPEX increased by $1.2 million in Q2.

    Mitigation: Due to restored salaries and merit, reflecting a normalized cost structure. Expected to see higher leverage and returns in Q4 and 2027 as revenue scales and operational discipline continues.

    What to watch in Q3 FY26

    4

    Academic Market Recovery

    H2 FY26
    Currentgradually improving
    Targetyear-over-year growth in H2 FY26

    Why it matters

    Academic sales are a key segment, and recovery indicates broader market health and potential for increased revenue.

    The economic market in the U.S. is gradually improving. And what we have done and continue to do is look at those pockets where funds have been released to actively and aggressively go after that. And we put our salespeople as well as, as you can imagine, our distributors as well, are into those accounts, and we believe we're well positioned for year-over-year growth there in the second half.

    Q&A highlights

    6

    Inquired about the growth levels for the electroporation business group and the organoid/multi-channel systems (MEA) product.

    Management confirmed that both electroporation and organoid/multi-channel systems businesses experienced strong, double-digit growth.

    “It grew strong, double digits, and we're seeing the same in our year-to-date strong performance in our organoids or multi-channel systems products.”

    asked by Paul Knight · answered by John Duke

    2 min read5 chapters

    Detailed Narrative

    01

    Strategic Execution and Operational Discipline

    Harvard Bioscience's disciplined focus on sharpening strategy, commercial alignment, and operational discipline has driven strong Q2 performance. This includes optimizing the sales organization and distribution channels, as well as executing manufacturing footprint consolidation through Project Viking. These efforts have translated into meaningful top-line growth, a more differentiated product portfolio, and stronger market engagement from key customer segments.

    02

    Product Portfolio Strength and Innovation

    The company observed double-digit growth within its telemetry and CMT businesses, highlighted by strong performance in AAA bioprocessing and electroporation products. New Product Innovation (NPI) revenue significantly increased its contribution to 11% of total revenue in Q2, up from 3% last year. This indicates successful product development and market adoption, with customers showing strong engagement across both preclinical and CMT platforms.

    03

    Geographic and Customer Expansion

    Strong demand from CRO customers was a primary driver of revenue growth, alongside solid execution through the Fisher Scientific distribution agreement, which generated double-digit growth. Geographically, APAC revenue grew 24% year-over-year, with China revenue up 29% to $3.1 million, primarily driven by CRO demand and the Made in China Localization Initiative. The academic segment also showed improvement over the first quarter.

    04

    Gross Margin Dynamics and Future Outlook

    Adjusted gross margin for Q2 was 57%, slightly lower than anticipated due to a product and geographic mix shift towards higher CMT product sales and strong China demand, both of which carry lower relative gross margins. Despite this, management remains confident in long-term gross margin expansion. This will be driven by a strategic focus on higher-margin NPI platforms, expanding recurring revenue, and structural cost savings from Project Viking beginning in 2027.

    05

    Project Viking Progress and Cost Savings

    The manufacturing footprint consolidation project, Project Viking, is progressing on track. Two product lines were successfully transitioned out of the Holliston facility in Q2, with two more planned for Q3. This initiative is expected to deliver $3 million in cost savings in 2027 and $4 million annually thereafter, contributing significantly to future profitability and operational efficiency.

    AI-generated summary of the company’s earnings call. Not investment advice.